Diagnostic test company merges with California firm
Sarasota-based RPS Diagnostics was founded in 2004.
Business Observer Staff
| 6:00 a.m. June 21, 2019
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RPS Diagnostics, a Sarasota-based commercial developer, manufacturer and marketer of diagnostic tests, has merged with a company in Carlsbad, Calif.
The merger, of RPS and diagnostic development firm Lumos Diagnostics, forms a combined company that will be known as Lumos Diagnostics. Dr. Robert Sambursky, president and CEO of RPS Diagnostics, will serve as president and CEO for the new combined company, which will maintain an operating headquarters in Sarasota. Lumos is a subsidiary of Planet Innovation, based in Australia.
Sambursky tells Coffee Talk his company, founded in 2004, wasn’t looking for a partner when it came across Lumos. “It fell into our lap because we had an opportunity to evaluate digital technology because we knew that was a good next-generation strategy,” he says. “In exploring the best technology available, we realized Lumos Diagnostics and RPS had tremendous synergies.”
The process, from introductions to vetting to the merger occurring took a little over a year, says Sambursky. “It became pretty obvious to me as well as their corporate development team that rather than just creating a supply agreement for readers, we had an opportunity to really combine our strengths and our core competences to create a much stronger, more complete and robust company together,” he says.
RPS is focused on commercializing products for infectious and inflammatory diseases. Lumos develops digital readers for the same technology, so the combined company can develop digital tests that transmit results to phone applications and doctors’ offices.
The merger also means the company will benefit from an enhanced research and development department. “They have an arsenal of scientists at their site in California that are complementary to ours,” Sambursky says.
There are some challenges that come with the merger. Sambursky says the integration of the companies involves combining cultures, structures and operating systems along with accounting and finance.
Both companies will retain all their employees. “That’s one of the remarkable uniquenesses of this deal,” he says. “Our commercial organization lacked certain functional areas and so did theirs.” The result? A merger with no terminations.
The company will now focus on commercializing its biggest product, FebriDx.
“I think that really this is a unique opportunity because we’re committed to Sarasota and growing this side of the business as well as what’s going on in California,” Sambursky says. “We’re very excited about our prospects going forward.”